The National Council of Insurance Legislators, a coalition of state policymakers specializing in insurance regulation, has adopted a model law for a dental loss ratio. This model legislation has gained approval from the American Dental Association and the National Association of Dental Plans.
This model serves as a springboard for introducing state bills dictating how much of insurers’ premiums should go toward actual patient care as opposed to administrative expenses. The aim is to ensure more transparent spending and hold insurers accountable for returns of part of the premium if patient care targets are not met. It also prevents insurers from unduly raising prices in response to these requirements. Reporting and transparency standards are to be aligned with the principles already in place for medical insurance under the Affordable Care Act.
Dr. Rizkallah – the author of question 2 in MA doesn’t think this is a good idea.
